How to start an underwear retail shop business?
Is it profitable to open an underwear store now? How much is the profit? How to open an underwear shop? In recent years, the development of underwear stores is particularly fast, attracting more and more investors. Nowadays, there are a lot of underwear shapes, fabrics, designs, and colors. Even in the market, there are many functional underwears. A lot of entrepreneurs want to open an underwear store, So is it still profitable to open an entity underwear store now? How much is the profit?
Development prospect of the underwear industry
“Modern underwear” is a new concept introduced into China from abroad. In many European countries, the underwear industry has developed for hundreds of years, while in China it has only developed for a few decades. According to the relevant survey. In western countries, people’s consumption of underwear accounts for as much as 30% of clothing consumption. However, in our country with a large population, the consumption of underwear only accounts for 5% of the consumption of clothing. China’s underwear market has a huge future development space. Therefore, the underwear industry is regarded as a high growth industry.
Profit analysis of the underwear industry
In China’s underwear industry market, the price of most underwear is between 60-200 yuan. What’s the profit? According to industry sources, the higher the grade of underwear, the greater the profit. And the industry profit is about 10% – 50%. So, how do today’s consumers judge the level of underwear? On the one hand, it is the objective judgment of consumers: through the fabric quality, style design and other aspects of underwear. The more high-grade materials are used, the more beautiful the style design is, the high-grade underwear recognized by consumers today. On the other hand, it is consumers’ intuitive judgment: most consumers think that the underwear of big brands is higher than that of small brands.
Which underwear makes more money
We can divide the underwear on the market into three grades: low, medium and high. Although we said earlier that “the more high-end underwear, the higher its profit”, in terms of the macro phenomenon of the whole market, medium-sized underwear is the best developed, the most market share and the lowest investment risk in the industry.
According to the experience of people in the underwear industry, mid-range underwear is the most worthy of investment. One is the low investment threshold. Compared with high-end underwear brands, the cost of joining the mid-range underwear is lower, generally, only 30000-50000 USD is needed to join. At the same time, the requirements of middle-class underwear brands for franchisees are also lower; second, because the consumers of middle-class underwear are wider because their prices are not high, most consumers can bear their costs. For investors, choosing to open a mid-range underwear store is easier to enter the mass consumer market. Third, because of the limited popularity of the mid-range underwear brand in the market, businesses will give franchisees more business power, as well as all aspects of shop support. For investors, opening stores is more flexible and convenient.
Generally Speaking, The profit of choosing high-grade underwear is the highest. While the investment of middle-grade underwear is easier to enter the mass consumer market. Of course, the investment risk is relatively small. For investors with abundant funds, they can choose to invest in high-end underwear. But for investors with insufficient funds, they can choose to open a mid-range underwear store. In general, the development of the underwear industry is far from saturation, and there is a huge profit space in the industry. The underwear industry is worthy of entrepreneurs’ investment consideration.
How much does it cost to open an underwear shop?
Usually, a decent lingerie shop can be opened with an investment of 10,000-60,000 USD. This seems simple, but it’s very complicated in terms of actual operation because the underwear shop is far more complex than the ready-made clothes. For example, ready-made clothes usually only have a few sizes. Such as s, m, l, while the underwear is more subdivided. The same model is divided into a, B, C, D levels, and there are different sizes such as 70, 75, 80, 85, etc., with a large number of colors. There may be 80 or 90 products of different specifications for the same item number to choose from. If you are not careful in purchasing, you will have a large inventory backlog. So many people have said: it’s easy to open a lingerie shop, but it will take some time to earn more objective profits.
How to open a profitable underwear shop?
1. Dealing with fierce competition
At present, the underwear industry is indeed very prosperous, but we still need to invest carefully and have a strong psychological capacity and the ability to control the market. In addition, in the fierce market competition, the price war is increasingly fierce, so it is better to have certain measures to deal with it. No matter whether it is price winning or brand characteristic winning, at least there should be competitiveness other than price, otherwise, it is difficult to survive in the gap.
2. Identify target customer base
Underwear stores are not open at will. You need to determine which consumer groups you want to face, such as students, and which age group of students. Therefore, to determine and subdivide the consumer groups, we can determine which brand of underwear to sell.
3. Choose the right store location
The location of the store should be determined according to the consumer group and investment ability. Generally speaking, the better the location, the better the business, but the greater the risk of investment, because the rent is higher, but it can not be too remote, after all, “the smell of wine is afraid of the deep lane.”. Secondly, it is necessary to select the location with clothing sales atmosphere, such as pedestrian street, commercial street, shopping mall and supermarket, which is mainly a single store, and must be the place where the target consumers often appear.
4. Careful brand selection
Brand is very important to the success of management. Generally speaking, Choose what kind of brand to choose depends on the local economic level, and the quality of the brand must be excellent, and the brand must have the strength and the determination to develop the market for a long time. Generally speaking, the price of middle and low-end brands is moderate and the profit space is large, which is more suitable for the sales of underwear stores. At present, the first, second and third lines of underwear brands are relatively clear, so entrepreneurs should not only look at the brand popularity, but also the credibility and service. The opening of the underwear store is just the beginning, and the promotion and overall planning of the store in the later stage are more important. Therefore, the strength of the brand is now reflected.
It’s difficult to know what products customers need for the first purchase. It’s suggested that a, B and C cups should be selected. After the brand is determined, appropriate styles must be selected. No one brand can make all styles sell well. Therefore, we should mainly manage the best-selling styles, which can save money, speed up the selection process of customers, and enhance customers’ good impression on the products. In addition, the comfort of the product is also very important. Only when you wear it comfortably can you train repeat customers.
The combination of products is a very deep knowledge, which can be combined according to the characteristics of women’s breasts in different regions, their love for color, and different climate environment. For example, the North women’s breasts are fuller, and the sizes should be larger, while the South women are petite and exquisite, and the small size will be more popular, the winter color should be darker, the summer color should be lighter, and the red color will be the best-selling color during the Spring Festival. Product hanging board is also an art. The popular styles and colors must be displayed in the main position. The visual display of hanging board is also very important. Customers entering the store must feel the cleanliness and taste of the overall display. Women are all emotional animals. Creating a beautiful shopping environment can stimulate their desire to buy.
6. Shopping guide selection
Shopping guide is also related to the quality of performance. Experienced shopping guide can judge the size of the cup cover and give accurate suggestions to customers when seeing customers. The best age for shopping guide is 28-40 years old. It’s not authoritative for young girls to recommend underwear. As a close fitting clothing, even if the size is the same, there will be some differences, and the difference in shape and function is even greater. Therefore, shopping guide should persuade customers to try on it. Girls who buy underwear for the first time are often shy. Shopping guide should eliminate their tension and give correct explanations, so as to leave the best impression on customers.
7. Choose a promotion point
In general, targeted advertising can bring direct benefits. A small underwear store can’t have a lot of media advertising investment, but entrepreneurs can spend some money and do something practical. For example, they can display billboards for promotional activities, make lightboxes at the door of the store, distribute some small flyers and coupons in the crowded areas, and plan window shows, and invite one or two models to show. Attractive promotions and giveaways can not only deepen your relationship with customers but also be a good way for you to maintain price stability without discount.